Author Question: If the money wage rate and the price level both rise by the same proportion, then in the figure ... (Read 54 times)

nevelica · **on:** Jun 29, 2018

If the money wage rate and the price level both rise by the same proportion, then in the figure above the potential GDP line ________, and the aggregate supply curve ________.

A) shifts rightward; does not shift
B) does not shift; shifts rightward
C) shifts rightward; shifts rightward
D) shifts rightward; shifts leftward
E) does not shift; shifts leftward

Question 2

When people reduce their rate of time preference

A) more credit is made available in the banking system.
B) less credit is made available in the banking system.
C) the demand for credit shifts right.
D) the supply of credit shifts left.